Bed Bath & Beyond Reaches Common Stock Purchase And Registration Agreements With B. Riley

(RTTNews) - Bed Bath & Beyond Inc. (BBBY) said that it reached a common stock purchase agreement and a registration rights agreement with B. Riley Principal Capital II, LLC to provide additional capital to the company.

Simultaneously, the company is terminating its previous public equity offering and all outstanding warrants for Series A Convertible Preferred Stock associated with that offering.

The company intends to file a registration statement on Form S-1 with respect to the Committed Equity Facility, upon the effectiveness of which the Company would be permitted to begin selling additional securities pursuant to its terms.

The company said it will use potential net proceeds from the financing transactions to fulfill conditions set forth in an amendment to the company's credit facility filed earlier today. The company expects to utilize its amended credit facility to enable its strategic initiatives in fiscal 2023.

As of March 27, 2023, the company had a total of about 435 million shares of common stock issued, and approximately 295 million shares of common stock available for issuance.

Bed Bath & Beyond reported preliminary net sales of about $1.2 billion in the fourth quarter. Quarterly comparable sales is expected to decline in the 40% to 50% range.

In a separate press release, Bed Bath & Beyond said that it filed a prospectus supplement with the U.S. Securities and Exchange Commission under which it may offer and sell up to $300 million of shares of its common stock. Common Stock will be offered through B. Riley Securities Inc., which is serving as the sales agent.